Ending your marriage through divorce will involve multiple types of financial considerations. Determining how to divide your marital assets can often be a complex process, and this is especially true if you are a business owner. A family business or professional practice may be one of your most valuable assets, and it may also be your primary source of income. Ensuring that you can continue to own and operate your business will likely be one of your most important goals during your divorce, so you will want to make sure you understand how to approach this issue.

Is a Family Business Considered Marital Property?

Before determining how ownership of business assets will be handled, you will need to understand whether your business or practice is considered marital property. In general, if the business was founded during your marriage, it will be considered a marital asset, but if you owned the business before getting married, it will be considered separate property. However, even if your business is not a marital asset, you may need to address any increase in value of the business during your marriage. If your spouse contributed to the business, such as by helping manage operations or by investing marital funds in the company, you may be required to reimburse your spouse for these contributions.

Asset Division and Business Interests

If your business is a marital asset, it will need to be considered during the division of marital property. In some cases, spouses choose to sell a family business during their divorce and divide the profits earned. However, this may not be an option for you, so you may need to make other arrangements as you determine how to divide this and other marital assets.

After completing your divorce, it is likely that your life will change at some point. If you are looking to pursue job opportunities or live closer to your family members, you may be considering moving to a home in a new city. However, if you share custody of your children with your ex-spouse, you will need to understand how Michigan’s parental relocation laws will apply to your situation. Depending on your circumstances, you may need to receive approval from either your ex or the court where your divorce case was heard before you can relocate.

Parental Relocation in Michigan

If you have sole legal custody of your child, you usually will not need to seek approval for relocation, although you may need to get court approval if you will be moving outside the state of Michigan. However, if you share legal custody with your child’s other parent, you will need to receive approval if you will be moving at least 100 miles away from your current home or to another state. If you already live more than 100 miles away from the other parent, or if your planned move will place you closer to the other parent’s home, you will not need to receive approval for relocation.

If you have not worked outside of the home in some time and you are considering divorce, you may have concerns about how you will make ends meet without your spouse’s financial contributions. The prospect of reentering the workforce after being a homemaker or stay-at-home parent for many years can be daunting. You may worry that you do not have the job skills or education needed to gain suitable employment. You may also worry about being forced to place your children in childcare when you would rather stay home and raise them yourself. Alimony, or spousal support, may offer financial assistance for divorcing spouses who are not the primary wage-earner, but alimony is not awarded in every Michigan divorce.

When Is Alimony Awarded in Michigan?

There are several avenues through which alimony is awarded in Michigan. You may be entitled to alimony if you and your spouse signed a valid prenuptial agreement or other marital agreement that gives you the right to alimony. You may also receive alimony if you and your spouse can agree to a spousal support arrangement and the court approves of your agreement. Your lawyer may be able to help you negotiate a spousal support agreement or you may reach an agreement through an alternative resolution method like mediation or collaborative law. Unfortunately, many spouses find that getting the other spouse to agree to reasonable spousal support terms is nearly impossible. In this case, you would need to petition the court for a spousal support order.

All parents are required to provide financial support for their children. When parents are married or cohabitating with each other, they will work together to meet their family’s needs and cover ongoing expenses related to their children. However, when parents are divorced or separated,  they will usually need to make arrangements to ensure that they are both contributing to their children’s needs. Child support orders will set a monthly amount that parents will be required to pay, and in most cases, the non-custodial parent will make payments to the custodial parent. If a parent has failed to meet their obligations to pay child support, the other parent will want to be sure to understand how they can enforce the court’s orders and receive the support their children need.

Child Support Enforcement Methods

Parents are required to make all child support payments as ordered by the court. Any missed payments will continue to be owed, and interest may apply until past-due amounts are fully paid. A parent who receives child support may take legal action to enforce the other parent’s obligations. The court may use a variety of methods to collect the amount owed, including:

Getting a divorce can be a complex, difficult process, but fortunately, couples have a number of options for how they can approach the decisions they will need to make and the disputes they will need to resolve. While litigating a divorce in court is always a possibility, this is often the last resort since a divorce trial can be lengthy, expensive, and emotionally draining. In most cases, couples will work to negotiate a divorce settlement, allowing them to complete the divorce process without fighting battles in the courtroom. Mediation is one way of doing so, but collaborative divorce is an increasingly popular option for ending your marriage in Michigan.

What Is Collaborative Divorce?

During a collaborative divorce, spouses will work together to create a divorce settlement, and they will each be represented by an attorney who has been trained in collaborative law. At the beginning of the collaborative process, the spouses and their attorneys will sign an agreement stating that they will be honest with each other, negotiate in good faith, and provide any information requested by the other party. To foster the spirit of cooperation and collaboration, the attorneys will agree to withdraw from the case if the couple cannot reach a settlement, and the spouses will need to find new attorneys to represent them during divorce litigation.

If you are getting divorced, you will likely have a variety of financial concerns, ranging from your ability to cover court costs and attorney’s fees, to how your marital assets and debts will be divided, to whether you will be able to support yourself once your marriage has ended. Depending on the income you and your spouse earn, one of you may be required to provide financial support to the other after your divorce. By understanding when spousal support (which is commonly known as alimony) is appropriate and how the amount and duration of payments are determined, you can prepare a post-divorce budget that will allow you to meet your ongoing needs.

Factors That May Affect a Spousal Support Award

Typically, spousal support is awarded if one spouse earns a significantly higher income than the other, and its purpose is to ensure that both spouses can continue living at the standard they became accustomed to during their marriage. In some cases, spouses may agree in their divorce settlement on the amount of support that will be paid, as well as the length of time that payments will last. Couples may also use a prenuptial agreement to specify whether alimony will or will not be paid in the case of divorce.

Getting through the divorce process can be difficult, even in the best of situations. Unfortunately, divorces have the potential to turn ugly, and disagreements between spouses can become contentious legal battles. This can be especially true when a couple has children, and parents can sometimes take extreme steps to try to gain an advantage in child custody disputes. Parental alienation, in which one parent tries to negatively influence his or her children’s attitudes toward the other, can be especially problematic. A divorcing parent should be sure to understand the signs that his or her former partner is taking these types of improper actions.

Recognizing Parental Alienation

In some cases, parental alienation may involve one parent having a negative attitude toward the other, and their children may pick up on these feelings and begin to mimic them. This type of behavior should be avoided, and a parent should try to make sure their children can maintain a good relationship with the other parent. However, in some cases, parental alienation can be more insidious or overt. A spouse may actively attempt to harm his or her children’s relationship with the other parent in hopes of influencing decisions about child custody by convincing children that they do not want to spend time with one parent.

During the COVID-19 pandemic, many families have had to get used to new ways of doing things. Whether this means working remotely, helping children attend school virtually, staying home whenever possible, practicing social distancing, or meeting up with people online rather than in person, things have changed significantly in many people’s lives. In some cases, these changes may have caused relationships between married couples to deteriorate, leading them to consider divorce. However, the same factors that led to this situation may also make the divorce process more difficult. Concerns about infection may affect court proceedings, and reaching a resolution on divorce-related issues can be tricky when the parties and their attorneys are maintaining social distancing. Fortunately, virtual divorce mediation is one solution that can help spouses resolve their differences and complete their divorce during this uncertain time.

How Does Virtual Mediation Work?

During divorce mediation, spouses will typically sit down together in the same room as a mediator, and they will go over all of the issues that need to be resolved before they can legally end their marriage. The mediator will act as a neutral third party, helping the spouses understand how the law applies to their situation and offering suggestions on how they can reach mutually acceptable agreements on issues such as asset division, child custody, and spousal support.

Divorce can be messy, even in the best of circumstances. Emotions run high, and you and your spouse may get caught up in getting even with one another rather than what is best for everyone involved. If you have children together, it is imperative that you consider their interests when making decisions. Thankfully, there are steps that you can take to ease the transition. 

1. Reassure the Kids

Children do not always cope well with divorce, but it is often because they fear what might happen. Their worries can vary, but the solution is usually the same. All they really need is consistency and reassurance. They need to know that both of their parents will be there for them as life changes and that they are not at fault for the dissolution of your marriage. 

A divorce encompasses almost every part of your life. It can affect your emotional well-being, your financial well-being, and your family life. There are many decisions you must make when you get a divorce and all of those decisions will affect you for many years to come. Even just one mistake can cause you to suffer negative consequences, especially when it comes to finances. Avoiding making mistakes can mean a lot less stress and a lot smoother of a divorce process. Here are a few common mistakes that people make in a divorce and how you can avoid making them.

Not Knowing What Assets You and Your Spouse Have

When you are getting a divorce, property division is important and one of the most important things is knowing what property you and your spouse actually have. Most of the time, one spouse will have the responsibility of handling the finances. You should make sure if that spouse is not you, you have a decent understanding of your finances and what you actually own.

Forgetting About the Tax Consequences of Your Decisions

Almost every financial decision you make during your divorce will impact your taxes in some way. Spousal support payments will be taxed, which may or may not be better than a lump sum that would be taxed. Child support payments can also change your tax consequences. It is important for you to understand what the tax consequences of your actions will be.